Best 25 Cities To Do Business in India for 2025
India is a dynamic economy and diverse market. In this era of globalization and digital connectivity, doing business in India has never been more accessible. Whether you are a budding entrepreneur or an established corporation, India’s cities have something to offer everyone. The country offers numerous opportunities for entrepreneurs and businesses. The choice of location plays a pivotal role in determining the success of any venture. Here in this article, we have listed the best cities to do business in India at present.
Please note that the order in which these cities are presented does not imply any specific ranking, as the suitability for business can vary depending on the industry and individual business needs.
Advantages of Doing Business in Cities in India
Doing business in cities offers several advantages that can contribute to the success and growth of a business. Here are some key advantages:
a) Market Access
Cities typically have large and diverse consumer markets. This provides businesses with a substantial customer base to tap into and potentially higher sales opportunities.
b) Infrastructure
Cities tend to have well-developed infrastructure, including transportation networks, communication systems, and utilities. This infrastructure facilitates the efficient movement of goods and services.
c) Skilled Workforce
Cities attract a diverse and educated workforce. This means businesses can access a pool of talent with various skills and expertise, which can be crucial for innovation and growth.
d) Networking Opportunities
Cities are hubs of business activity, hosting conferences, trade shows, and networking events. These opportunities allow businesses to connect with potential clients, partners, and investors.
e) Easy Access to Resources
Cities often have access to resources like research institutions, universities, and specialized suppliers. This can be valuable for businesses that rely on research and development or specialized inputs.
f) Better Accessibility of Financial Services
Major cities are home to financial institutions, investment firms, and banks. This makes it easier for businesses to access capital, loans, and financial services.
g) Cultural Diversity
Cities are melting pots of cultures, languages, and traditions. This diversity can be advantageous for businesses that want to reach a wide range of customers or clients.
h) Government Support
Many cities offer incentives and support to attract and retain businesses. This can include tax incentives, grants, and assistance with permits and regulations.
i) Competitive Advantage
Being in a city allows businesses to stay competitive by keeping up with industry trends, technologies, and competitors more easily.
j) Good Quality of Life
Cities often offer a high quality of life with access to healthcare, education, entertainment, and cultural activities. This can be attractive to employees and their families.
k) Innovation Hubs
Some cities are known as innovation hubs, fostering creativity and entrepreneurship. Businesses in these cities can benefit from a culture of innovation and collaboration.
l) Global Connectivity
Cities with international airports and ports offer excellent global connectivity. This is advantageous for businesses engaged in international trade.
m) Visibility and Branding
A city location can enhance a business’s visibility and brand recognition. It can also provide a prestigious address for client meetings and marketing purposes.
n) Resilience
Cities tend to have diverse economies, which can make them more resilient to economic downturns in specific industries.
o) Diverse Customer Base
Businesses in cities can serve a diverse customer base, which can help them adapt to changing market conditions.
25 Cities to Do Business in India
1. Mumbai, Maharashtra
Mumbai, often referred to as Bombay, is not just the financial capital of India but also its entertainment and fashion hub. Home to the Bombay Stock Exchange, it’s a hotspot for the banking and finance sector. Mumbai offers a vibrant startup culture, a diverse workforce, and excellent connectivity through Chhatrapati Shivaji International Airport.
2. Bengaluru, Karnataka
Known as India’s Silicon Valley, Bengaluru is the heart of the country’s IT industry. It boasts a thriving startup ecosystem and is home to numerous tech giants. With a pleasant climate and a cosmopolitan atmosphere, it’s a magnet for tech talent.
3. Delhi-NCR
Delhi-NCR is a sprawling region encompassing Delhi, Gurugram, and Noida. It offers proximity to government institutions, corporate offices, and a vast consumer market. It’s a preferred location for businesses seeking national reach.
4. Hyderabad, Telangana
Hyderabad is an emerging IT and pharmaceutical hub. Known for its business-friendly policies, it is home to companies like Microsoft and Facebook. The city’s infrastructure and quality of life are attracting professionals from across the country. It is one of the most suitable cities to do business in south India.
5. Chennai, Tamil Nadu
Chennai is known for its strong manufacturing base, with industries like automobile and electronics thriving. Its strategic port facilities and skilled workforce make it a preferred location for industries reliant on imports and exports.
6. Pune, Maharashtra
Pune is home to prestigious educational institutions and a growing IT sector. It offers an excellent work-life balance, making it an attractive destination for tech startups.
7. Ahmedabad, Gujarat
Ahmedabad is a thriving business and trade centre in Gujarat. It’s renowned for its textile and manufacturing industries and has recently witnessed significant growth in the IT and education sectors.
8. Kolkata, West Bengal
Kolkata offers a mix of traditional businesses and new-age startups. The city has a rich cultural heritage and a focus on arts and culture. It’s known for its creative industries.
9. Jaipur, Rajasthan
Jaipur, the Pink City, has a strategic location in North India. It’s a hotspot for small and medium enterprises (SMEs) and boasts a skilled labour force.
10. Chandigarh
Chandigarh, a planned city, is known for its quality of life. It is a growing centre for IT and manufacturing, offering a mix of urban convenience and green spaces.
11. Indore, Madhya Pradesh
Indore boasts a progressive business environment and modern infrastructure. It is rapidly becoming a preferred destination for manufacturing and service-based industries.
12. Coimbatore, Tamil Nadu
Coimbatore is a prominent manufacturing and engineering hub in South India. It has a strong presence of SMEs and a focus on industrial innovation.
13. Lucknow, Uttar Pradesh
Lucknow benefits from its central location in North India. It is a growing city with a diverse consumer base, offering opportunities in various sectors.
14. Kochi, Kerala
Kochi is known for its strategic port and focus on technology and tourism. It is an attractive destination for businesses in these sectors.
15. Bhubaneswar, Odisha
Bhubaneswar is known for its evolving infrastructure and proactive government policies. It is conducive to business growth, particularly in the IT and manufacturing sectors.
Suggested Read: Best Business Ideas in Odisha
16. Surat, Gujarat
Surat is renowned for its diamond and textile industries. It is a city where traditional craftsmanship meets modern entrepreneurship.
17. Nagpur, Maharashtra
Nagpur benefits from its central location and logistics advantage. It is a key player in the manufacturing sector, with a growing industrial presence.
18. Visakhapatnam, Andhra Pradesh
Visakhapatnam, or Vizag, is known for its port facilities and industrial corridors. It is a city poised for significant economic development.
19. Trivandrum, Kerala
Trivandrum, the capital of Kerala, focuses on research and development. It is a city where IT and healthcare companies find a conducive environment.
20. Guwahati, Assam
Guwahati is strategically located in Northeast India and is the capital of the state of Assam. The city offers a wide range of opportunities from trading to logistics. It is the gateway to the region’s markets. Guwahati leads in the list of the best cities to do business in north-east India.
21. Vadodara, Gujarat
Vadodara boasts a diverse industrial base, including petrochemicals, engineering, and pharmaceuticals. It is an industrial powerhouse in Gujarat.
22. Kanpur, Uttar Pradesh
Kanpur balances traditional industries with emerging startups, creating a diverse business landscape. It is known for its leather and textile industries.
23. Patna, Bihar
Patna offers untapped market potential and improving infrastructure. It is a city in Bihar to watch for businesses looking to expand into the state of Bihar.
24. Ranchi, Jharkhand
Ranchi is known for its mineral-rich region and a growing education sector. It is contributing to the economic growth of Jharkhand.
25. Agra, Uttar Pradesh
Agra is famous for its tourism industry, driven by the iconic Taj Mahal. Additionally, it is witnessing growth in the manufacturing and retail sectors.
These cities represent the diverse economic landscape of India, catering to various industries and business sizes. When considering a location for your venture, factors like industry compatibility, infrastructure, and government policies should guide your decision. Each of these cities offers unique advantages for businesses looking to thrive in the Indian market.
Hello, I’m Rupak Chakrabarty, a passionate advocate for small and medium enterprises (SMEs) and the driving force behind MUVSI Consulting, where I serve as a dedicated small business coach. With years of experience in the entrepreneurial world and a deep-rooted commitment to helping SMEs thrive, I bring a wealth of knowledge, expertise, and guidance to aspiring and established business owners alike.